Gundlach: Easy Money Made On Apple at $500

By Dimitra DeFotis

The Street.com reports that Jeffrey Gundlach thinks Apple shares will have trouble making it beyond $530 in the coming months.

TheCEO and chief investment officer of DoubleLine Capital told CNBC that Apple (AAPL) can move higher from its current price, near $494.19, up 0.6% today. But he said Apple “is a dead-money stock for quite a while to come, once it settles in around $530.”

Gundlach told CNBC in June that $500 was an easy mark, but said Apple stock might never reach $700 again.

Gundlach also said he is “scared to death” to short Tesla Motors (TSLA), which he said is “a cultish stock and who knows where it goes?” Barron’s wrote a skeptical cover story on Tesla published on June 10. The shares are up about 62% since, to $165.93. (See “Recharge Now!,” subscription required.)

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There are 16 comments

AUGUST 29, 2013 2:24 P.M.

rndal wrote:

if you looks at his fun, he hasn't done much in terms of perf.

AUGUST 29, 2013 2:34 P.M.

Doug wrote:

To be exact - his fund is down 1% this year to date. Why would you take advice from someone who underperformed the S&P by 16% year to date

AUGUST 29, 2013 2:36 P.M.

rgrfdrer wrote:

He is a fixed income guy.

AUGUST 29, 2013 2:44 P.M.

GaryDMN wrote:

I'm not looking for easy money, I'm looking for a safe long term investment and Apple is the safest bet I can find, by far.

AUGUST 29, 2013 2:44 P.M.

Johnny W wrote:

His name is Gundlach btw, not grundlach

AUGUST 29, 2013 2:52 P.M.

Anonymous wrote:

Ah shucks. I really wasn't paying attention. Cars bore me. But all my buddies cruised in like barracudas when Tesla was $25. Cult? Hmm. Not exactly. They just look for the magus who's clear as a bell to read now that Steve's gone. Can't beat that...

What a complete market manipulating buffoon, probably bought too much Google at 900 and is crying all the way home.

AUGUST 29, 2013 4:09 P.M.

One of the Apple Boys wrote:

Lets not give too much credence to all the Apple Nay-Sayers these past two days or past year and half for that matter. We've got an art buyer proclaiming "dead money" and the "Qualcom Gonna Be 1000 by 2003" guy complaining that he isn't excited. Look kids, it takes more than a little preparation and planning to change the way we live in the world and do it correctly. In the big picture Apple has always done it right. I may be at risk for revealing insider information, but for those reading: AAPL is innovating and its stock is going up.

AUGUST 29, 2013 4:27 P.M.

Ben Dover wrote:

Gundlach also said on the show that housing values have returned to 2006-2007 levels. This guy loves to misstate facts to support his arguments. He is a giant ego and wants to see if he can compete with Icahn, well he can't. Icahn is trying to get Apple to 600/share. Jeffrey is a savant. If you saw what he calls art, you would clearly not invest with him. CNBC has a way of making stars of imbiciles......just look how long Rikki Santelli has been telling us the sky is falling.......maybe 6 years now and the market is still fine and housing is recovering and employment is slowly getting better.

AUGUST 29, 2013 5:19 P.M.

Anonymous wrote:

if you actually think about what he's saying it's not much. it will settle around 530 for a while. ok. but after hitting what? could reach 600 and sell off. he doesn't know any better than anyone whether Apple will reach 700. Google hit 600 two years go and sold off viciously and was in the 400-550 range for a long time. It was conventional wisdom during htat time that GOOG would never see 600 again. Starbucks went through the same thing a few years ago too, when MCd's and Dunking nad everyone else started focising on better coffee and every analyst and their mother asked, why would anyone pay $3 for coffee when comparable coffee can be had from Dunking for half the price? Nike too.

if Apple has a large screen phone out in 2014, iwatch and maybe a TV, 700 will be a lay-up. not to mention continuing to increase iTunes earnings impressively as it has done.

AUGUST 29, 2013 5:20 P.M.

Anonymous wrote:

It's a crazy market when investors see Apple as a risky play and Tesla as a solid investment. What sort of profits is Tesla making? I sure don't see how Apple could be dead money in the coming months if he's talking about the holidays. If Apple is able to sell 50 million iPhones before the end of the year and if Apple's share price stays flat then the market is certainly crooked. I do know one thing and that is Apple's share price is really lagging in terms of P/E ratio. I'm willing to bet that when iTunes Radio goes on air, there are going to be millions of loyal Apple fans signing up to get iTunes Match and ad-less iTR.

AUGUST 29, 2013 7:39 P.M.

Anonymous wrote:

@Dimitra DeFotis, "Barron’s wrote a skeptical cover story on Tesla " ?

Barron's predicted a 2012 Romney landslide.

AUGUST 29, 2013 10:04 P.M.

ace wrote:

Gundlach is a talking head who is probably shorting apple

AUGUST 30, 2013 5:28 A.M.

David S. Matrecano wrote:

I agree with "rgrfdrer"..
He is a fixed income guy....

AUGUST 30, 2013 9:20 A.M.

Re Jeff wrote:

Well I can appreciate an opinion... Not sure if I concur. Hmm.

I was looking at the art that was scoffed from Gundlach. I can only guess why he chose the art he did in the first place. That's okay. I usually find the buyer of the art more fascinating than the art itself unless there's a real mind behind the collection which is pretty rare since most accept that there are no rules. Me. I would've looked for a Mondrian with a bit of blue and yellow in the composition along with the red, black and white.

Anyway. To say maybe never $700 again is pretty myopic. Look at where Microsoft, Blackberry, Nokia etc currently are. The present atmosphere re Apple is good because it is a great set up for the next series of products that as product offerings go beyond the iPhone and iPad...

Will it settle in at $530? 530 is not a bad price to get into. Hmm.

I have to wonder too. At what point does stock promotion end and manipulation begin. And as far as manipulation goes. What's legal? It doesn't really take much to light a candle...

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.